E-Commerce License in Dubai: Complete Setup Guide 2026

Note: The pricing mentioned above is indicative and provided for reference purposes only. Final costs may differ based on your business activity, licence package, visa requirements, office requirements, and government fees. For accurate and personalised pricing, consult our business setup experts.

Free zone or mainland: a sales-channel decision

The wrong place to begin with is price; you should start with the position of your buyers.

• The fact that a business is mostly selling overseas or via international marketplaces usually indicates that it is based in a free zone.
• When selling directly to customers in the UAE, the company is generally operating from the mainland or from a free zone, which provides a dual licence or an onshore permit (you should check what your particular zone permits).
• Keeping shares in a warehouse in Dubai and arranging local shipping is done on the mainland.
• It is necessary for the mainland to obtain several visas since the quota is based on the amount of office space.

The article we have on free zone versus mainland versus offshore in Dubai for 2026 outlines the structural differences, and the guide comparing IFZA with Meydan and Shams will be useful if you’re considering a free zone. If you’d like to look at the matter from the point of view of licences, you can read about the differences between a DMCC and a DED licence, or find out why so many online sellers in Dubai also obtain a general trading licence. It’s also worth taking a look at the Dubai government’s overview of free zones.

Documents and requirements

• Passport copies for every shareholder and manager, plus Emirates ID and visa copies for UAE residents
• A few trade name options for approval
• The exact activity description, so the licence matches what your store sells
• Your website or store link, which some authorities review before approval
• A tenancy contract with Ejari for mainland, or a flexi-desk or virtual office agreement for a free zone
• With regard to e-commerce on the mainland, some sources refer to a TDRA no-objection certificate, so find out if it applies to your situation.

The guide we have on the different types of business licences in Dubai and the advice regarding which business licence to choose in 2026 applies in the case where your store offers a variety of products or services.

How to get an e-commerce license, step by step

1. Choose the jurisdiction according to the place where you sell.
2. Select the activity and the trade name and have both of them approved.
3. Get the documents ready and sign the incorporation papers.
4. Arrange the office setup, choosing either an Ejari lease or a flexi-desk.
5. Pay the licensing fees in order to obtain the licence.
6. Apply for residence visas, obtain the establishment card and open a corporate bank account.

A free zone licence may be received within one to three working days. Still, a business that is actually in a position to take payments, having both the visa and the bank account in place, usually takes several weeks. Information on visa processing time is given in our guide to UAE residence visa processing time, and our page on company formation in Dubai details how we manage the entire process.

What an e-commerce license really costs

The licence fee is a single item; you also have to take into account the visa and the Emirates ID, the establishment card, health insurance, the corporate bank account, the payment gateway fees and accounting. Banks usually impose minimum balances as well. The breakdown we provide of the costs involved in setting up a company goes into each item so that your quote can be checked item by item.

Tax and compliance for online sellers

The United Arab Emirates imposes a corporate tax at 9% on profits exceeding AED 375,000, whereas eligible income from free zones is subject to a 0% tax rate. However, this zero per cent rate is conditional and therefore having a free zone licence does not mean that no tax will be owed. Additionally, eligible small businesses can claim relief, a measure which has now been extended to 2029, as explained in our article on UAE small business relief, and the procedure for filing the return is set out in our guide to filing UAE corporate tax returns in 2026.

When your taxable supplies exceed AED 375,000 per year, VAT registration becomes a requirement, and you have the option to register voluntarily if your supplies are above AED 187,500. E-invoicing is also coming, and our guide on e-invoicing in Dubai for 2026 and 2027 details what online sellers should do to prepare. Make sure to keep your records clean from the very beginning, as instructed in the guide on accounting and bookkeeping requirements for UAE companies. A tax advisor can advise you on how all of this applies to your specific situation.

Banking and payment gateways

Payment gateways and marketplaces require a licence as well as a UAE corporate account for the store. Banks closely examine online businesses, and it is common for applications to be rejected if the licence activity, the website and the business model stated do not match.

First, read the instructions on how to open a business bank account in Dubai and find out why applications for a Dubai business bank account are rejected. People who receive payments in more than one currency should also consider multi-currency bank accounts in Dubai.

Mistakes that cost online sellers time

• A licence activity that doesn’t match what the website actually sells
• Choosing a free zone, then finding out UAE sales need a mainland distributor
• Budgeting for the licence and forgetting the bank account
• Leaving VAT until the threshold has already been passed

The list that we have prepared of the 10 mistakes made when forming a company in Dubai includes many of those which we come across again and again.

E-commerce license in Dubai FAQ

What will be the cost of an e-commerce license in Dubai in 2026?

Free zone licences generally range from around AED 5,750 to AED 15,000, and mainland licences are usually between AED 12,000 and AED 25,000 or higher, not including visas, office and bank expenses, while a realistic total cost for a launch is often between AED 15,000 and AED 35,000.

Is it possible for a foreigner to obtain an e-commerce licence in Dubai?

Correct, foreigners are allowed to own 100% of a free zone company and also 100% of a company based on the mainland for most commercial activities; the exception is the e-trader licence, which is reserved for nationals of the UAE and the GCC.

Can I offer my goods or services to customers in the UAE with a free zone licence?

There are often restrictions; for example, direct sales to consumers on the mainland may require a licence from the mainland, a dual licence or an onshore permit, depending on the zone. Make sure to verify this before you register.

Shall I have a physical office?

Normally, licences on the mainland will require a lease through Ejari, and the free zones usually provide flexi-desk or virtual office options.

How long does it take to obtain an e-commerce license?

A licence for a free zone can be obtained within one to three working days, but it usually takes several weeks to arrange the bank account and the visas.

Before you choose

Most excessive spending begins when a licence is chosen before the sales model has been decided upon. If you establish the sales model first, the correct licence will then usually be obtained.

If you’d like a second opinion on the structure, book a free consultation with Dubai Consultant. It’s much cheaper to change a plan than a licence.